Another $1 billion? Airbnb or more debt financing

Airbnb was in talks with investors on Monday, with up to another $1 billion in debt financing, according to people familiar with the matter, according tomedia reports. The travel platform company announced Monday that it has raised $1 billion from Silver Lake Capital and Sixth Street Partners.

The company also plans to refinance $500m-$1bn by issuing tier-one mortgage bonds or convertible notes or selling equity, people familiar with the matter said.

Another $1 billion? Airbnb or more debt financing

Airbnb has not disclosed the terms of its deal with Silver Lake Capital and Street Sixth Partners. People familiar with the matter said the deal included secondary mortgage bonds, plus warrants for about 1 per cent of the company. The deal is at an interest rate of 11% to 12%.

The new deal may also contain different types of debt and will use similar interest rates, but may not include warrants.

Airbnb said Monday’s announcement of the deal was intended to help the holiday home-sharing company weather a new crown epidemic that has hit the global travel industry hard.

“These new resources will support Airbnb’s ongoing efforts to enable it to make long-term investments in the host community that provides housing and experiences, and to serve all of Airbnb’s stakeholders.” The company said.